English edition - March - April 2003

Oil and the Economy
 

Talisman Canada and the Sudanese Presbyterians
An American judge declares himself competent

The Alien Claims Tort Act (whereby foreign nationals can sue for reparations in Americans courts) allows foreigners to file a lawsuit against parties responsible for crimes committed outside the United States if the defendant is in the United States. The Sudanese Presbyterian Church filed suite against Talisman Energy Corporation in the Federal District Court of New York on behalf of Sudanese Africans living within a 80 mile radius of the company’s oil drilling sites accusing it of “ deliberately and intentionally” supporting government troops in “a brutal ethnic cleansing campaign targeting the civilian population.” The plaintiffs cite “killings, forced displacement, destruction and confiscation of property, rape and slavery” and affirm that the Khartoum regime’s “interest in petroleum sales was to use profits to purchase necessary helicopters and arms in their war against the people of the South”.

Talisman demanded that Judge Allen G. Schwartz declare himself incompetent to rule as there was no Presbyterian church in his jurisdiction. They added that a corporation is legally incapable of human rights violations, that aiding and abetting is not ground for liability, that under forum non conveniens, the judicial proceeding would be better served if they were to be held in Sudan, and last but not least that a legal hearing in a court of law would undermine US diplomatic overtures to Sudan. Judge Schwartz dismissed the objection with many legal arguments stating, “The plaintiffs alleged that Talisman willingly conspired with the government to commit genocide” and “the fact that the alleged illegal acts generated profit does not disprove that they were NOT war crimes.” (New York Lawyer). The ruling was pronounced March 20 2003. The following day Judge Schwartz was killed in a car accident allegedly from a heart attack.

Talisman sells to ONGC Vadesh of India

Talisman Energy has sold its 25% stake in Sudan’s Greater Nile Petroleum Operating Company for the sum of $771 million dollars. The company has ceded to the demands of churches and human rights groups responsible for an uproar in the Canadian press. The ensuing mutual fund disinvestment campaign was  largely responsible for a severe drop in the company’s stock prices. However the Canadian coalition would seem to be more concerned about national honor than the fate of the beleaguered Sudanese. Just because the oil concession changed hands does not mean that the Indians will be any different. Rather than force Talisman’s withdrawal, the coalition should have demanded that the company suspend operations. Talisman reported that the company doubled its investment in Sudan. Does honor have a price?

ONGC Videsh began negotiations with its affiliates to buy Sudanese brut at market value so as to improve India’s oil security (Reuter).

Lundin Petroleum and OMV Austria renew oil exploration

Both companies ceased oil production activity in January 2002 for security reasons. However, Khartoum recently issued them an ultimatum: “We have militarily secured your concession areas; we have heavily militarized your oil road south of Bentiu; we have tripled the size of our garrison at Adok on the Nile; we’ve completed an all-weather road as far as Leer, and cleared out all the villages on either side of the road. So it’s time now for you to resume activities… or else.” The US-led Civilian Protection Monitoring Team (CPMT) has authoritatively chronicled these clearances and other activities. Like road construction, most of atrocities took place during January 2003 in the middle of the cease-fire. With a certain cynicism, both Lundin and OMV announced their return was made possible by “positive steps in the peace process and improvements on the ground in their concession.” (Business Respect Newsletter). The companies have a contractual agreement to operate when conditions allow. The decision is contrary to the February 4 Addendum which decreed “the suspension of work on the Bentiu-Adok road”, since oil exploitation can only resume because of the oil construction.

Malaysians in Sudan
Petronas of Malaysia, part of the Greater Nile Operating Company has bought Mobil Oil Sudan, the holder of a gas station concession widely dispersed in the North along with oil depots in Port Sudan, Khartoum and Gili (Xinhua). Kota is developing business in Sudan. It provides fluid and mud-engineering services at drilling sites (The Star).

-Budget allocations for 2004 show a change in American monetary assistance in East Africa. Kenya will receive $ 3,8 million instead of $13,5 million; Tanzania $3,2million instead of $8, 1 million. Sudan on the other hand has been allocated $50 million in development aid, which will go primarily to areas in rebel held areas (EA).

-The World Bank has granted a $1,5 million sum in the Nuba Mountains for agricultural development, and plans to send a team of experts to oversee the projects and to encourage the return of displaced persons. (PANA)

The Sudan Free Zone and Market Company (SFZMC) plans to invest $ 7,5 million in a commercial free zone on the Ethiopian border in Gallabat. It was formerly a state-owned company. The investors include businessmen from the United Arab Emirates, Yemen and Saudi Arabia (LOI).

Ali Tamin Fertak, the new Sudanese Minister of Electricity met in Paris with French EDF and SEMT Pielstick directors and representatives from the French Development Agency (LOI).
 


 
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